Leveraging Technology for Efficient Program Cost Management
In today’s fast-paced business environment, program managers are under constant pressure to manage costs efficiently while maintaining program quality. One way to achieve this is by leveraging technology to streamline program cost management processes.
Series
Over the next few weeks, I shall share a series of posts entitled “What Great looks like – Cost Management in Program Management”
Here I share how the Best Practice principles and detailed practices of leveraging technology for efficient program cost management will transform the performance of your projects.
Principles of Leveraging Technology for Efficient Program Cost Management
Centralization of Data:
One of the primary principles of leveraging technology for efficient program cost management is centralization of data. By using a centralized system to store and manage cost data, program managers can easily access and analyze data to identify cost-saving opportunities.
Real-time Data:
Leveraging technology also allows for real-time data management. Program managers can access cost data in real-time, which enables them to quickly identify cost overruns and take corrective action.
Automation of Processes:
Automation of cost management processes helps to reduce manual errors and save time. By automating processes such as invoicing and billing, program managers can focus on more value-added activities, such as strategic cost management.
Data is the new Oil (only everlasting/renewable)
Have you ever heard the saying ‘Data is the new Oil’?
Well in the 1900’s as the industrial revolution, the shoulders on which our modern everything has been built, relied on Oil and the density of energy that we could yield from this (at the time) abundant commodity.
Well in the 2000’s and beyond, data is the ‘New Oil’, only renewable, and if collected well, if aggregated well, if contextualised well, can yield decades above average profits for those who can extract from this ‘renewable resource’.
The difference is – it is not a ‘commodity’ rather, ‘data’ within each company is to that company, a imutable source of intellectual property. A wealth creation engine, just waiting to be unlocked, for those courageous enough to make the best decisions, to unlock it.
Detailed Practices of Leveraging Technology for Efficient Program Cost Management
Use of Cost Management Software:
One of the key practices of leveraging technology for efficient program cost management is the use of cost management software. This software helps program managers to collect, manage, and analyze cost data in a centralized system. Some popular cost management software includes SAP, Oracle, and QuickBooks.
Implementation of Mobile Technology:
Mobile technology is another useful tool for program cost management. By using mobile devices, program managers can access cost data from anywhere, at any time, allowing for faster decision-making and problem-solving.
Integration of Systems:
Integration of cost management systems with other project management systems such as scheduling and risk management can help to streamline processes and increase efficiency. By integrating systems, program managers can easily access cost data from other project management systems, reducing duplication of effort.
Use of Analytics and Visualization Tools:
Analytics and visualization tools can help program managers to analyze cost data in real-time and identify cost-saving opportunities. These tools can provide insights into cost trends, patterns, and anomalies, which can help program managers to make informed decisions.
Most important takeaways of the decade: Leveraging Technology
As important as understanding the transformational power of the Internal Combustion Engine in the 1910’s, akin to that time, grasping the transformation impact of this blog and others like it, leveraging technology for efficient program cost management is crucial for program managers to maintain program quality while managing costs efficiently.
By centralizing data, using real-time data management, and automating processes, program managers can save time, reduce errors, and focus on more value-added activities. Detailed practices such as the use of cost management software, mobile technology, system integration, and analytics and visualization tools can help program managers to leverage technology effectively.
Best practice thinkers : Leveraging Technology
In the field of leveraging technology for efficient program cost management, there are several thought leaders who have contributed valuable insights and best practices. Some of the best thinkers in this space include:
Michael C. Fagan –
Michael C. Fagan is a renowned expert in program management and has authored several books on the subject, including “Effective Program Management: More Than Just Managing a Series of Projects.” Fagan emphasizes the importance of technology in program management and highlights the need for program managers to leverage technology to manage costs efficiently.
John K. Hollmann –
John K. Hollmann is an expert in cost engineering and project management and has authored several books on the subject, including “Cost Engineering Health Check: How Good are Those Numbers?” Hollmann emphasizes the importance of using technology to collect, manage, and analyze cost data, as well as the need to use analytics and visualization tools to identify cost-saving opportunities.
Frank Ryle –
Frank Ryle is a program management consultant and the author of “Program Management: A Life Cycle Approach.” Ryle emphasizes the importance of using technology to automate processes, such as invoicing and billing, and the need to integrate cost management systems with other project management systems to increase efficiency.
Great vs Good vs Status Quo (Average)
Great
Great Program Managers demonstrate that they have a command of the interface and integration of:
- People (Leadership and Management of both internal and external cohorts)
- Processes (Technical and procedural management of the “doing” of the program)
- Systems (the technology stack, the manner in which it is organised and integrated, tom maximise the performance of both the People and the Processes)
Great Program Managers leverage technology for efficient program cost management is the ability to integrate technology seamlessly into program management processes.
Great program managers are those who can identify the right technology solutions for their programs and integrate them effectively into their program management processes. They also have the ability to analyze cost data in real-time, identify cost-saving opportunities, and take corrective action quickly.
Good
Good program managers, on the other hand, may ‘follow’ what has been laid out for them often ‘squishing square pegs into round holes‘ to ‘make do’, using the technology ‘given’ to manage program costs, but may not integrate technology as effectively into their program management processes.
They may also not have the same level of expertise in analyzing cost data and identifying cost-saving opportunities however as the data is compromised in an ‘any purpose’ solution, not a ‘fit for purpose’ solution, magnifying ‘biases’ has a detrimental impact on decision making.
Average (Status Quo)
Average Project and Program Managers are blind to both the need to manage ‘People’ and “Systems’ rather are biased to controlling (often reactively) the ‘Doing’ of the technical delivery of the project.
As a result, average project managers, burn out, have more headaches, earn poor reputations, deliver substandard returns, underperform the project’s stated objectives.
A case to change, Be Great!
Great program managers are those who can effectively leverage technology to manage program costs, while good program managers may also use technology but may not integrate it as seamlessly into their program management processes.
The global consulting firms KPMG, EY, Deloitte, and BCG all have different areas of expertise and offer a range of services for the construction industry. However, some of the common recommendations and trends across these firms for the construction industry include:
Digital Transformation:
All of the consulting firms recommend that construction companies embrace digital technologies and transform their operations to be more data-driven and technology-enabled. This includes using Building Information Modelling (BIM), Artificial Intelligence (AI), Internet of Things (IoT), and other emerging technologies to improve efficiency, productivity, and safety.
Sustainability and ESG:
The firms also emphasize the importance of sustainability and Environmental, Social, and Governance (ESG) factors in the construction industry. This includes incorporating sustainable practices and materials in construction projects, reducing carbon footprint, and ensuring social responsibility.
Risk Management:
Effective risk management is another key recommendation across the consulting firms. This involves identifying and mitigating risks, managing stakeholder expectations, and implementing effective governance and controls to manage project risks.
Collaboration and Partnership:
The consulting firms recommend that construction companies adopt a collaborative and partnership-based approach to project delivery. This includes working closely with stakeholders, suppliers, and subcontractors, and using digital platforms to facilitate collaboration and communication.
Talent Development:
Finally, the consulting firms emphasize the importance of talent development and upskilling in the construction industry. This involves investing in training and development programs to improve the skills of the workforce and attract new talent to the industry.
Time For Change – Change or Die
Overall, the consulting firms agree that the construction companies must change or die, therefore the industry is ripe for transformation and companies that embrace digital technologies, sustainability, and risk management will be best positioned to yield decades of higher-than-average returns in the future.
Thought leaders in the arena: Leveraging Technology
Here are some books on leveraging technology for efficient program cost management:
- “Effective Project Management: Traditional, Agile, Extreme” by Robert K. Wysocki – This book provides a comprehensive guide to project management, including techniques for leveraging technology for program cost management
- “Project Management Metrics, KPIs, and Dashboards: A Guide to Measuring and Monitoring Project Performance” by Harold Kerzner – This book focuses on how to use metrics, KPIs, and dashboards to track project costs and performance, with a focus on leveraging technology.
- “Cost and Value Management in Projects” by Ray R. Venkataraman and Jeffrey K. Pinto – This book provides practical guidance on how to use cost and value management techniques to improve project performance, including leveraging technology for cost management.
- “Construction Project Management: A Complete Introduction” by Alison Dykstra – This book covers all aspects of construction project management, including techniques for leveraging technology for cost management.
- ‘Cost Accounting and Financial Management for Construction Project Managers : by Len Holm, This book focuses on project cost management, including techniques for Financial management, visualisation, budgeting, and value engineering, with a focus on leveraging technology
- “Project Cost Estimating, Budgeting, and Value Engineering” by Mario Vanhoucke – This book focuses on project cost management, including techniques for estimating, budgeting, and value engineering, with a focus on leveraging technology
Here are the books and links related to the authors you mentioned:
- “Software Inspection: An Industry Best Practice” by Michael C. Fagan – This book focuses on software inspection techniques and practices, including leveraging technology for more efficient and effective inspections.
- “Project Planning, Scheduling, and Control: The Ultimate Hands-On Guide to Bringing Projects in On Time and On Budget” by John K. Hollmann – This book provides a practical guide to project planning, scheduling, and control, including leveraging technology for more efficient program cost management
- “A Comprehensive Guide to Project Management Schedule and Cost Control: Methods and Models for Managing the Project Lifecycle” by Randal Wilson and John K. Hollmann – This book provides a comprehensive guide to project management schedule and cost control, including leveraging technology for more efficient program cost management.
